James Shewan & Sons, Inc. v. United States
Headline: Court orders the United States to pay appeal and lower-court costs and interest in a ship-repairs suit, allowing costs against the Government under the 1920 admiralty waiver law.
Holding: The Court ordered that the United States must pay the appeal’s costs and that the District Court should assess lower-court costs and interest under the 1920 law allowing costs against the Government in admiralty suits.
- Allows courts to charge costs against the United States in admiralty suits under the 1920 law.
- Directs district courts to assess costs and statutory interest on money judgments against the Government.
- Clarifies that interest at 4% (or contract rate) may run as the court orders for such judgments.
Summary
Background
A private party sued the United States to recover the value of repairs made to the steamship Biran, which the opinion says was owned by the United States. The suit was brought under a law passed March 9, 1920, that allows certain admiralty suits against the Government. Earlier the District Court dismissed the libel in admiralty, and on November 17, 1924 this Court reversed that dismissal. The Court’s earlier opinion said nothing about who should pay costs, and the mandate issued by the Clerk did not award costs because the ordinary rule disallows costs against the United States.
Reasoning
The repairer asked the Court to withdraw its mandate so costs could be awarded. The Court looked to Section 3 of the 1920 act, which requires such suits to be handled like cases between private parties. That section expressly allows a decree against the United States to include costs and, for money judgments, to include interest at four percent per year (or a higher contract rate) as ordered by the court. Applying that statute, the Court concluded it must assess the costs of the appeal against the United States and directed the District Court to assess the costs of the suit there and any interest as the statute permits.
Real world impact
The ruling makes clear that when a suit is brought under the 1920 admiralty statute, courts may award costs and statutory interest against the United States. It changes the outcome for this particular repair claim and directs lower courts to calculate costs and interest under the statute for similar cases.
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